CJO @ Delta & AA - What would you do?
03-06-2018 | 05:42 PM
#51
Gets Everyday Off
Joined: Aug 2016
Posts: 6,995
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From: Fully Retired
Thank you, Slice. Few have pointed out these buisiness decisions. Newer fleet comes with additional purchasing costs. Older fleets come with more maintenance and fuel consumption. Eventually, older fleets have to be replaced.
Two major airlines have different strategies at the moment. (Things can change over time.) Which is better will be played out over the next few years.
Two major airlines have different strategies at the moment. (Things can change over time.) Which is better will be played out over the next few years.
03-06-2018 | 06:46 PM
#52
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Joined: Mar 2016
Posts: 1,906
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From: Here and there
DL’s fleet age was 17.0 yrs last summer. AA’s was 10.8 yrs.
That gap doesn’t come for free. What will DL’s balance sheet look like when they start updating their fleet and reduce it from its industry lagging position? It’s all a trade off in choosing one path over another from a corporate management decision.
That gap doesn’t come for free. What will DL’s balance sheet look like when they start updating their fleet and reduce it from its industry lagging position? It’s all a trade off in choosing one path over another from a corporate management decision.
No disputing those facts, however, I’ve heard the 88s are paid for by the 9th or 10th of each month and the rest of the month is pure profit. The one department of ours that is consistently forgotten about and underestimated is our TechOps. There’s a reason they were selected by Pratt to overhaul over 5000 engines as a part of our NB Airbus deal in December.
Also, because of our lower debt we have a better credit rating than similar airlines which in turn helps with lower interest rates on new jets. No doubt our debt may increase in the next 5-10 years but it won’t be dramatic, if things stay the course like it seems to be.
03-07-2018 | 06:20 AM
#53
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Joined: Jul 2010
Posts: 3,867
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No disputing those facts, however, I’ve heard the 88s are paid for by the 9th or 10th of each month and the rest of the month is pure profit. The one department of ours that is consistently forgotten about and underestimated is our TechOps. There’s a reason they were selected by Pratt to overhaul over 5000 engines as a part of our NB Airbus deal in December.
Also, because of our lower debt we have a better credit rating than similar airlines which in turn helps with lower interest rates on new jets. No doubt our debt may increase in the next 5-10 years but it won’t be dramatic, if things stay the course like it seems to be.
Also, because of our lower debt we have a better credit rating than similar airlines which in turn helps with lower interest rates on new jets. No doubt our debt may increase in the next 5-10 years but it won’t be dramatic, if things stay the course like it seems to be.
03-08-2018 | 02:37 AM
#54
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Joined: Feb 2014
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From: Fo...md80
Our CEO(AA) addressed the debt situation and basically said “ why take $ that is invested at 8% and pay cash for airplanes , when you can leave it alone and finance them for 3%” I suppose we will see if that is a sound biz decision !
03-08-2018 | 04:09 AM
#55
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Joined: Nov 2013
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From: Fastest Hunk of Junk in the Galaxy
How much cash does AA have invested at 8%?
03-08-2018 | 11:57 AM
#58
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Joined: Dec 2006
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From: 737 FO
There are plenty of reasons to say a company isn't going anywhere... they've "been around a long time" is not one of them.
03-08-2018 | 12:23 PM
#59
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Joined: Mar 2016
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From: Here and there
03-08-2018 | 12:27 PM
#60
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Joined: Mar 2011
Posts: 1,410
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From: Cockpit speaker volume knob set to eleven.
UAL has had some of the most inept management in the last 30 years. They are still here. Many airlines have had equally inept management. They are still here. I don’t know how long you you’ve been in the business but in the right now snapshot, AA is probably as good a bet as any. But that’s just my 30+ years in this business. What do I know.
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